Wednesday, 18 September 2019

Franak Association Expects 100,000 Lawsuits in Swiss Franc Loans Case

ZAGREB, September 18, 2019 - Representatives of the Franak association, which brings together holders of loans originally indexed to the Swiss franc, said on Wednesday that the Supreme Court ruling of Tuesday constituted the final victory in their class action against eight banks and that by June 2023 more than 100,000 citizens were expected to sue banks over unfair terms regarding the currency clause in their loan contracts.

Explaining its ruling, the Supreme Court said on Tuesday that the eight sued banks had breached the collective interests and rights of holders of loans originally pegged to the Swiss franc.

The court reported that it had refused a motion by the banks for a review of the case in which the Croatian Consumer Protection Association sued eight domestic banks to protect their collective interests and rights.

"We have finally proved that we are right. We have won and now 125,000 people can sue banks, 30,000 have already done so, and I expect more than 100,000 lawsuits by June 2023," SNAGA party member of parliament and Franak association activist Goran Aleksić told a news conference outside the Supreme Court.

Aleksić is confident that anyone who opts to sue the banks will win, noting that the Supreme Court ruling was final and binding on all courts. "I maintain that everyone is certain to get their money back," he said.

He stressed that in the meantime the Supreme Court would have a few more things to do, primarily to decide whether loan contracts with a clause indexing loans to the Swiss franc were null and void.

Aleksić says that a ruling by the Court of the EU determined that if a currency clause was null and void, so was a contract in its entirety.

He expects that in the next few months the Supreme Court will determine that loan contracts indexing loans to the Swiss franc are null and void, in which case, he says, compensation will be 100% higher than if only interest and the currency are null and void.

He added that the Court of the EU had established beyond doubt that if contractual terms were found to be unfair and therefore null and void, restitution had to be complete.

According to information from the Finance Ministry in mid-2016, over 58,000 debtors had Swiss franc-pegged loans totalling an amount of 20.9 billion kuna. Ninety-four percent of the debtors accepted a conversion scheme and 85% of them converted their loans. The balance of CHF-denominated loans after the conversion in mid-2016 stood at 15.4 billion kuna.

More news about Swiss franc loans can be found in the Business section.

Thursday, 12 July 2018

Court Upholds Annulment of Currency Clause in Swiss Franc-Pegged Loans

ZAGREB, July 12, 2018 - Croatia's High Commercial Court has overturned an appeal of eight lenders that were sued over Swiss franc indexed loans, and upheld a ruling of the Zagreb-based Commercial Court about the legal nullity of the foreign currency exchange clause in the case of the CHF-indexed loans.

Saturday, 29 July 2017

Debt Write Off for Some Swiss Franc Loan Debtors

Croatia Osiguranje insurance company will write off 30 percent of the principal and default interest.

Thursday, 29 September 2016

MOST and HDZ Differ in Their Approach to Conversion of Swiss Franc Loans

The issue of possible lawsuits by banks against Croatia due to forced conversion of Swiss franc loans into euros could become an obstacle in political negotiations between HDZ and MOST.

Sunday, 18 September 2016

UniCredit Bank to Sue Croatia for Forced Conversion of Franc Loans into Euros?

Conversion of franc loans in euros could bring Croatia and banks to court.

Tuesday, 5 July 2016

Croatia in Trouble with EC Over Swiss Franc Conversion Law

Croatia is threatened by an infringement procedure for violating EU law

Saturday, 14 May 2016

EC Considering Suing Croatia Due to Swiss Franc Loans Conversion

European Commission demands from the government to find a more balanced solution.

Friday, 18 September 2015

Parliament Unanimously Accepts Swiss Franc Solution

Banks now have 45 days to send new calculations out, clients 30 days to accept

Monday, 24 August 2015

Loans in Swiss Francs to be Converted to Euros

Minister Boris Lalovac to send his new proposal to the Parliament